Republic of the Union of Myanmar Preparatory Survey on BOP ... · people and expanding business in the region, providing “A Better Life, A Better World” to Myanmar’s consumers

Republic of the Union of Myanmar

Republic of the Union of Myanmar

Preparatory Survey on BOP Business

for Solar Storage Unit and Solar

Lantern

Final Report

(Public Version)

December 2016

Japan International Cooperation Agency

Panasonic Corporation

17-008

JR

OS

目次

1. Executive Summary ................................................................................................................................ 1

1.1 Overview of Survey and Compliance with Development Issues .................................................... 1 1.1.1 Overview of Envisioned Project (as at Time of Proposal) ...................................................... 1 1.1.2 Survey Background ................................................................................................................. 4 1.1.3 Survey Objectives ................................................................................................................... 6 1.1.4 Compatibility with Development Issues ................................................................................. 6

1.2 Survey Method ................................................................................................................................ 7 1.2.1 Overall Survey Plan ................................................................................................................ 7 1.2.2 Survey Period .......................................................................................................................... 8 1.2.3 Survey Area ............................................................................................................................. 8 1.2.4 Survey Structure and Role ...................................................................................................... 9 1.2.5 Business Model Implemented (at the time of pilot sales) ..................................................... 11 1.2.6 Survey Approach ................................................................................................................... 15

1.3 Verification Results ....................................................................................................................... 17 1.3.1 Advisability/Inadvisability of Commercialization ................................................................ 17 1.3.2 Reasons for Advisability/Inadvisability of Commercialization ............................................ 18 1.3.3 Other Verification Items Aimed at Construction of Business Models, and Results .............. 23 1.3.4 Countermeasures to Issues that Remain for the Future ......................................................... 27

2. Reference .............................................................................................................................................. 29

2.1 Field survey ................................................................................................................................... 29 2.1.1 Pictures .................................................................................................................................. 29

3. Figure and Table ................................................................................................................................... 35 3.1.1 Figure .................................................................................................................................... 35 3.1.2 Table ...................................................................................................................................... 36

4. Source ................................................................................................................................................... 37

List of Abbreviations AIS Automotive & Industrial Systems Company

ESE Electricity Supply Enterprise

GOGLA Global Off-Grid Lighting Association

HPGE Hydropower Generation Enterprise

MBC Myanmar Business Central Corporation

MEPE Myanmar Electric Power Enterprise

MESC Mandalay Electricity Supply Corporation

MFI Micro Finance Institution

MJI MJI Enterprise

MOE Ministry of Energy

MOEE Ministry of Electricity Energy

MOEP Ministry of Electric Power PACT PACT Global Microfinance

PAP Panasonic Asia Pacific

PwC PricewaterhouseCoopers Sustainability LLC RB Rainbow Bridge YESC Yangon Electricity Supply Corporation

1. Executive Summary 1.1 Overview of Survey and Compliance with Development Issues 1.1.1 Overview of Envisioned Project (as at Time of Proposal) (1) Envisioned Project Plan This project envisions a B to C

model wherein we collaborate

with microfinance organizations

(hereinafter referred to as

“MFI”) and agriculture-related

businesses centered on

Panasonic’s Myanmar Branch

Office, which is already

established in Myanmar,

utilizing their farming area

networks to sell two types of

products—SOLAR STORAGE

and SOLAR LANTERNS—to

BOP groups living in areas without electricity. The project is to mainly target two income levels, BOP1

(people living on annual household incomes of between 3,000 and 10,000 dollars) and BOP2 (people

living on annual household incomes of between 1,500 and 3,000 dollars, selling the high-priced SOLAR

STORAGE to BOP1 and the low-priced SOLAR LANTERNS to BOP2.

Regarding distribution of the two product types to BOP groups under the project, it is envisioned that, by

establishing partnerships with MFI and agriculture-related businesses that have broad farming area

networks in Myanmar, products will be distributed through these organizations’ existing client networks.

Furthermore, in line with the purchasing capability of low-income BOP groups, with our cooperative

partners we considered mechanisms for lowering payment hurdles by enabling the purchase of these

products through microfinance and installment sales. With regards to SOLAR STORAGE in particular,

since the sales price is 115 dollars—which is thought to be expensive for BOP groups—we believe that

microfinance and installment sales will become necessary.

PACT Global Microfinance (hereinafter referred to as “PACT”), with which we will be collaborating with

regard to microfinance, began microfinance operations in Myanmar with UNDP financing in 1997. Today,

PACT is the largest MFI in Myanmar, supporting 64 townships, 10,000 villages, and 680,000 members. In

considering this project, we conducted a survey of microfinance in Myanmar and approached PACT as a

potential partner from the standpoint of clientele size and project operation capability, reaching an

agreement for pilot sales cooperation. The Rainbow Bridge company (hereinafter referred to as “RB”), a

distributor, has been handling sales of Panasonic products in Myanmar for many years and has established

sales bases in numerous cities centered on Yangon and Mandalay.

Figure 1.1： Envisioned target customer

Source： Project member created based on Harvard business review, NRI

data

1

Through cooperation between PACT, which has a huge client network, and RB, which has a

well-established performance record and network in distribution and sales, it will be possible to provide

products to difficult-to-access BOP groups. Since PACT will be able to increase its own loan debit balance

and RB will acquire be able to acquire new business fields through this project, there is thought to be merit

for both organizations as long as the business feasibility of the project is established. Conversely, in the

case that these merits cannot be generated, it will become difficult to continue the project and we will need

to search for a new business model and new partners.

PACT will set an annual interest rate of 30% on loans for the purchase price of the two products, with a

repayment moratorium period of one year. Our preliminary survey found that the target clientele currently

pay 10-30 dollars per month to use generators, and so it is thought that setting loan repayments of around

15 dollars per month on SOLAR STORAGE purchases would be well within reason. Since the main point

of differentiation between SOLAR STORAGE and rival products is considered to be its long battery life of

approx. 5 years, comparisons will be made with cheaper rival products and differentiation will be

strengthened through the provision of after-sales maintenance services.

(2) Target Products (SOLAR STORAGE/SOLAR LANTERNS) This project envisages selling two products in Myanmar—SOLAR STORAGE and SOLAR LANTERNS.

SOLAR STORAGE comprises a solar panel, storage (storage battery), a straight-tube LED light, and a

bulb LED light. The storage also has a USB port, enabling recharging of mobile telephones and other

devices. SOLAR LANTERNS comprise solar panels and LED lights with built-in batteries. The two

products have different functions and attachments, and this affects their sales prices. For this reason, this

survey envisions selling two products in different price brackets to targets in different income groups. As

we will explain in detail in section “2.1.4 Situation Regarding Off-grid Solar Competition”, there is little

competition in the SOLAR STORAGE market, and so it is regarded as having high potential as a market.

In contrast, because of the product’s simple function, it is difficult in the SOLAR LANTERNS market to

Figure 1.2： Project over all

Source： Project member created

2

achieve differentiation and many rival products—including low-prices Chinese products—are sold in retail

stores; thus the market itself is regarded as a price competition.

(3) Pilot Sales Area The areas where pilot sales of SOLAR STORAGE and SOLAR LANTERNS are to be carried out are

areas without electricity where existing distribution networks can be utilized and the weather conditions

match the product characteristics of SOLAR STORAGE and SOLAR LANTERNS. For these reasons,

outlying agricultural village areas of Myanmar’s Mandalay district were selected.

(i) Utilization of existing distribution networks: since the local distributor has bases in Yangon and

Mandalay, it is easy to obtain cooperation for pilot sales in these areas.

(ii) Compatibility of weather conditions: located in Myanmar’s central Dry Zone, the Mandalay

district has longer periods of sunny weather compared to the Delta area and Yangon district,

making solar recharging relatively easy.

Figure 1.3： Solar Storage and Solar Lantern


3

1.1.2 Survey Background

Myanmar’s population reached 53.89 million in 2015,1 and with the lifting of economic restrictions in

recent years, the country is achieving rapid economic growth. With Myanmar’s 2014 GDP growth rate at

8.5% and its 2016 growth rate expected to be 7.8%, Myanmar’s GDP growth rate the highest of all

ASEAN countries2

However, Myanmar’s poverty rate is also a high 37%, with the 2016 per capita GDP a low 5, 953 dollars in

2016—the third lowest per capita GDP amongst ASEAN countries after Cambodia (3,711 dollars) and

1 United Nations Department of Economic and Social Affairs: Population Division 2 World Bank Global Economic Prospects 2016

Figure 1.4： Pilot sales area

Source：Zentech

Figure 1.5： Average sunshine hours in Yangon and Mandalay

district

Source： Project member created based on ClimaTemps.com

Figure 1.6： GDP growth rate of ASEAN countries

Source： Project member created based on World Bank, Global Economic Prospects 2016

4

Laos (5651 dollars) and one-quarter of Malaysia’s per capita GDP (27,278 dollars), which is the highest

amongst ASEAN countries. Consequently, expanding the country’s socioeconomic development while

increasing the incomes and improving the quality of life for the poor are important issues for Myanmar’s

government.

Since its establishment, Panasonic’s basic management philosophy has committed the company to “making

a contribution through our business operations to improving the lives of people around the world, and to

the further progress of society”. In particular, the Energy Device Business Division of Automotive &

Industrial Systems Company (hereinafter referred to as “AIS”) delivers safe and reliable products to

customers worldwide, in both developed and developing countries, through its cores business activities,

which are the production and sale of dry cells and batteries, improving people’s lives in accordance with its

mission of “Creating New Life with Energy”. Since BOP markets where there are many areas without

electricity are important markets for dry cell batteries—the division’s core business—high added value

SOLAR STORAGE and SOLAR LANTERNS are positioned as strategically important products in terms

of future expansion of dry cells and batteries in BOP markets. Panasonic and Myanmar have a

long-standing relationship. Panasonic Asia Pacific Pte. Ltd. was established in Singapore in 1989 as a

Panasonic distributor, and since then sales have also been expanded into Myanmar as the country is

regarded as an important market in the ASEAN region. In March 2015, Panasonic opened its first

Myanmar general showroom and service center in Yangon, and utilizing its strengths as a general

electronics manufacturer, has been contributing more and more to improving quality of life for Myanmar

people and expanding business in the region, providing “A Better Life, A Better World” to Myanmar’s

consumers and its business partners.3

3 Panasonic HP, Annual Report 2015

Figure 1.7： ASEAN countries per capita GDP (PPP)

Source： Project member created based on International Monetary Fund, World Economic Outlook

Database April 2016

5

1.1.3 Survey Objectives

This project envisions a business model wherein we collaborate with local partners (MFI and

agriculture-related businesses), utilizing their farming area networks to provide SOLAR STORAGE and

SOLAR LANTERNS products to BOP groups living in areas without electricity in Myanmar. Accordingly,

in order to realize the envisioned business model, this survey aims to ascertain the needs and market

environment for SOLAR STORAGE and SOLAR LANTERNS in Myanmar and formulate a distribution

model, partner cooperation model, work flow, and business plan aimed at commercialization. The ultimate

goal of the project is to realize a “stable electricity supply” to BOP groups who live in areas of Myanmar

that until now have been without electricity and are thought to have been using low-efficiency inferior

products by providing highly efficient manufacturer-guaranteed products.

1.1.4 Compatibility with Development Issues

One social issue in Myanmar is an insufficient supply of electricity. The electricity diffusion rate for the

country overall is an extremely low 30%, the lowest rate amongst ASEAN countries. The main electrified

regions comprise city areas such as Yangon and Mandalay; in contrast to a 60% electricity access rate in

urban areas, the electricity access rate for farming areas is 18%, meaning that approx. 80% of people living

in agricultural villages are still living in areas without electricity. The proportion of the population living in

areas without electricity in Myanmar is 30%, the second highest percentage amongst ASEAN countries

after Indonesia (41%), indicating that Myanmar’s development of electricity supplies is falling behind

other ASEAN countries.4

4 IEA, World Energy Outlook 2015

Table 1.1： Electricity access rate in ASEAN countries

Source： Project member created based on IEA, World

Energy Outlook 2015

Figure 1.8： Proportion of the population living

in areas without electricity in ASEAN countries

Source： Project member created based on IEA,

World Energy Outlook 2015

6

In 2015, the Myanmar Government announced a masterplan for achieving 100% domestic electrification

entitles the “National Electrification Plan”. Receiving 400 million dollars in financing from the World

Bank, the government is aiming to create an electricity supply network servicing 2 million households by

2020 and 7.2 million household by 2030.5 Through the sale of high-efficiency SOLAR STORAGE and

SOLAR LANTERNS products in areas without electricity, this project aims to provide a stable electricity

supply to people in these areas, a goal that also matches Myanmar Government’s policies. Furthermore,

although Her Excellency Aung San Suu Kyi—leader of the National League for Democracy (NLD), which

was newly elected as Myanmar’s ruling party in 2016—has been appointed to the newly created role of

State Counsellor, or head of government, immediately after the NLD come into power she served

simultaneously in four Cabinet roles as Minister of Electric Power and Energy, Minister of Foreign Affairs,

Minister of the President’s Office, and Minister of Education. For Myanmar’s current government,

domestic electricity supply is a top-priority policy issue, and it is believed that this project will contribute

significantly to the resolution of Myanmar’s social issues.

1.2 Survey Method 1.2.1 Overall Survey Plan

This survey mainly undertook to (i) survey the investment environment/business environment in

Myanmar; (ii) conduct pilot sales; (iii) consider means for partners to procure financing; (iv) consider

future business models; and ultimately (v) formulate a business plan.

5 World Bank, Myanmar towards Universal Access to Electricity by 2030

Figure 1.9： Project over all milestone


7

1.2.2 Survey Period

The survey period was nine months, from March to November, 2016. A survey team based in Japan visited

Myanmar a total of four times in 2016 (March-April, April-May, July, and October-November) to

conduct survey research in collaboration with Panasonic’s Myanmar Branch Office and local partners.

The survey periods were as follows:

Phase 1: March 28 – April 8 (10 days)

Phase 2: April 25 – May 27 (25 days)

Phase 3: July 4 – July 29 (20 days)

Phase 4: October 3 – November 4 (25 days) *Extended longer than the initial plan

1.2.3 Survey Area

As mentioned above in Section 1.1.1(1), the Mandalay district in Myanmar’s central Dry Zone was

selected as the area for implementing pilot sales of SOLAR STORAGE/SOLAR LANTERNS and market

surveys due to the large number of villages without electricity, the ability to utilize the distribution network

of RB’s Mandalay Branch Office, and weather conditions that matched the product characteristics of

SOLAR STORAGE and SOLAR LANTERNS. Following discussions with PACT (MFI) and RB

(distributor), which were already business partners, Kyaukpadaung Township in Mandalay District and

Chauk Township in Magway District were selected as the areas for conducting pilot sales and surveys.

8

1.2.4 Survey Structure and Role

With regard to the project’s overall structure, Panasonic (Japan) oversaw the project overall, while

Panasonic (Myanmar) collaborated with RB—Panasonic’s local distributor—in overseeing pilot sales and

PricewaterhouseCoopers Sustainability LLC (Japan) (hereinafter referred to as “PwC”) coordinated with

PwC (Myanmar) to provide overall support. Furthermore, Myanmar Business Central Corporation

(hereinafter referred to as “MBC”) coordinated with PACT (MFI) in carrying out pilot sales as sales

support for the period of the survey only (reinforcing the RB sales team and providing support for BOP

surveys).

Figure 1.10： Map of Mandalay district

Source： Myanmar Information Management Unit

9

For the pilot sales and BOP survey, generally a total of ten teams comprising nine MBC salespeople (one

per team) and two RB salespeople (two per team) accompanying PACT officers visited one village per day

to conduct piolet sales and BOP surveys. Three MBC managers held meetings with PACT officers at the

PACT office every morning to confirm the villages that would be visited that day and assign salespeople.

In addition, MBC managers input sales information reported by the salespeople each day and questionnaire

data into a database and reported this information to Panasonic and PwC. Panasonic and PwC collected

overall pilot sales and BOP survey results, facilitated weekly meetings, and otherwise managed the project

overall.

In Phase 4, which was added to the initial project plan, teams comprising two managers and six

salespeople additionally carried out budget controls and summarization of the sales activity results of

Phases 1, 2, and 3.

Figure 1.11： Project structure


10

1.2.5 Business Model Implemented (at the time of pilot sales)

At the time of pilot sales, first of all, a B to C model was implemented as the basic business model

whereby RB and MBC salespeople directly visited villages one by one with staff of the MFI PACT to sell

products. For the SOLAR STORAGE sales activities, Panasonic AIS in Japan provided new product

development, production management, and operational support, while in Myanmar the Myanmar Branch

Office of Panasonic Asia Pacific (hereinafter referred to as “PAP”; head office located in Singapore)

conducted marketing activities, developed sales channels, and carried out sales in collaboration with local

distributor RB (at the time of pilot sales, MBC was contracted to act as RB’s sales agent). Furthermore,

although RB has a strong distribution network in urban areas, the company has not constructed a network

for distribution to BOP lining in areas without electricity—the target of this projects—and so direct sales in

agricultural village areas without electricity were carried out with the cooperation of PACT, which has a

strong network in rural areas of Myanmar and has the largest number of members of any MFI in Myanmar.

Figure 1.12： Project structure for pilot sales and role


11

The basic sales model

implemented at the

time of pilot sales was

a B to C sales model

whereby RB and MBC

salespeople visited

villages one by one

together with PACT

officers to sell

products directly to

PACT members. Under

this model, the PACT

officer first of all

carried out normal

PACT activities such as collecting loan repayments and lending money to villagers newly requesting loans;

depending on the size of the village, these activities took an average of around one to two hours. The RB

and MBC salespeople then make approx. one-hour-long presentations about SOLAR STORAGE, and if

there were any villages desiring to purchase the product, the PACT officer carried out loan screening and

Figure 1.13： Business model for solar storage <As pilot sales>


Figure 1.14： Basic business model collaborating with PACT


12

made a loan decision on the spot, checking that there were no problems with the client’s loan history. Once

the PACT officer had approved the loan, the purchaser was able to receive the product on the spot and

25-installment loan repayments to PACT commenced. PACT then payed RB the amount for the SOLAR

STORAGE products purchased in cash at a later date.

The main objectives of the B to C sales model used in this project are to “maximize sales” and “minimize

costs”. For this reason, during the pilot period, verifications were carried out in two sales areas

(Kyaukpadaung and Chauk) centered on a sales model in which salespeople visited villages directly,

working together with PACT, with the aim of “maximizing sales”; however, partway through the project it

was decided to broadly carry out additional verifications of three sales models with the aim of “minimizing

marketing costs”.

Under the first additional sales model, RB work with MJI Enterprise (hereinafter referred to as “MJI”)—a

Japanese MFI active in Myanmar—instead of PACT, with MJI members (MJI clients) acting as sales

agents. Since it is not necessary for RB salespeople to visit villages one-by-one under this model,

marketing costs can be reduced. However, it is important that RB first of all explain the characteristics of

Panasonic’s SOLAR STORAGE and how the product is used to the sales agents, ensuring that they are

fully aware of the product’s value. For MJI, too, it is also compatible with MJI’s business philosophy that

BOP groups in farming areas—which are MJI members—borrow loans from MJI and carry out sales agent

activities with the aim of achieving economic independence for themselves. This model was also discussed

with PACT, but due to the large number of members and organizational scale in PACT’s case, it was

thought that finding appropriate human resources for acting as sales agents would be difficult, and so

partway through negotiations it was decided to carry out trial sales with MJI members acting as sales

agents.

For the second additional sales model, PACT officers distribute product leaflets and carry out pre-sales

activities. Under regulations in Myanmar, it is not possible for MFI to sell products. Accordingly, under

this sales model, although PACT officers cannot sell SOLAR STORAGE products directly, they can

instead distribute product information leaflets to PACT members and carry out pre-sales activities. In this

case, as with the sales agents in the first additional sales model, it is important that RB first of all

thoroughly convey product knowledge to PACT officers in whom PACT members have a high amount of

trust. There is no longer a need for RB salespeople to visit villages directly, and once a certain number of

villagers desiring to purchase the product has been reached, RB simply has to either deliver the products to

local retail stores or travel to the village to sell the products directly to the villagers, thereby making it

possible for RB to greatly reduce its sales costs.

Under the third additional sales model, a different MFI from PACT sells SOLAR STORAGE products

directly to its members. In addition to its regular microfinance function, this MFI also has a

production/sales function and has obtained the necessary licensing for conducting sales activities. In this

case, not only can RB’s distributor role be performed by the MFI—thereby reducing RB’s sales costs—but

13

also sales activities can be carried out more effectively by utilizing the clients and distribution channels the

MFI already has in place. However, there are extremely few MFI that have sales functions and licensing,

and so research and negotiations need to be carried out in order to realize this model.

Figure 1.15： B to C sales model used in this project


14

Furthermore, it was decided that a B to B to C sales

model (which had not be initially envisioned as part

of the project) was a necessary verification item in

terms of being a model that enables balance between

“maximizing sales” and “minimizing costs” with an

eye towards commercialization of the project, and

additional verifications were carried out. Under this

sales model, enterprises that are active in carrying

out CSR activities (sales promotions) purchase

SOLAR STORAGE products using their CSR

activity expenses. In recent years, a large number of

companies (both domestic and foreign) have been

moving into the Myanmar market and achieving

growth, and are actively carrying out CSR activities

and sales promotions as part of marketing. There are

two reasons why SOLAR STORAGE products in

particular contribute to companies’ CSR activities

and sales promotions. Firstly, the high-social-value

(in terms of education/life improvement) SOLAR

STORAGE is highly compatible with the CSR policies of many companies (education/local community

building), making it easy for companies to include SOLAR STORAGE in their CSR activity reports.

Secondly, for companies desiring to reach clients living in farming areas with their own products,

distributing SOLAR STORAGE (which has high added value for BOP groups in farming areas) as a

novelty or incentive also contributes greatly to raising awareness of their own brand. It is thought that this

sales model would enable BOP groups—the ultimate recipients—to acquire SOLAR STORAGE projects

free of change from these companies without having to purchase them for themselves, thereby greatly

contributing to increasing Myanmar’s electrification rate.

1.2.6 Survey Approach

The survey approach comprised three aspects: desk surveys (surveys using literature and the Internet and

examinations based on various kinds of data); interview surveys (hearings with related organizations and

businesses); and field surveys (pilot sales and BOP questionnaire surveys targeting BOP groups living in

areas without electricity). In particular, for the field surveys, verifications were carried out centered on the

sales model mentioned above in which an MFI (PACT) officer and salespeople visit villages to carry out

direct sales activities [Model (i)]. In carrying out the field surveys, since a large numbers of

stakeholders—Panasonic, PwC, RB, MBC, and PACT—are involved, a kick-off meeting of all those

involved was held in Phase 1 to confirm the implementation plan, share product knowledge, and

Figure 1.16： B to B to C sales model used in this

project


15

thoroughly carry out sales training and demonstration sales techniques. In Phase 2, countermeasures to

issues that emerged during Phase 1 were considered, leading to improved sales accuracy and survey quality.

In Phase 3, as in Phase 2, beneficial field surveys were conducted with a view to commercialization while

revolving PDVA based on the verification results obtained in Phase 2.

Furthermore, since the survey results obtained in Phases 1, 2, and 3 indicated a high desire amongst

farmers in BOP groups to purchase products with cash during the harvest season (September–October),

following the completion of Phase 3, additional pilot sales using the sales model in which an MFI (PACT)

officer and salespeople visit villages to carry out direct sales activities were carried out [Model (i)] as

Phase 4, realizing “maximization of sales”. Furthermore, with the aim of realizing “minimization of market

costs”, a model in which MFI (MJI) members act as sales agents [Model (ii)], a model in which an MFI

(PACT) distributed product information leaflets and conducted pre-sales activities [Model (iii)], and a

model in which another MFI capable of performing direct sales conducts direct sales [Model (iv)] were

constructed and sales verified in Phases 2, 3, and 4. On the completion of Phase 4, the possibility of

realizing a B to B to C sales model utilizing companies’ CSR activities (sales promotions) [Model (v)] as a

model for achieving balance between “maximization of sales” and “minimization of marketing costs” was

verified.

Figure 1.17： Approach of field research (Pilot sales, BOP research)


16

1.3 Verification Results 1.3.1 Advisability/Inadvisability of Commercialization

Since Myanmar is an important market for AIS and SOLAR STORAGE is a product that has direct value

for BOP groups, AIS positioned SOLAR STORAGE as an entry product for new markets and intended to

continue carrying out commercialization in the future. However, AIS plans to shift its resources to a B to B

to C sales model that can be expected to produce better “sales maximization” and “marketing cost

minimization”, assigning lower priority to the B to C sales model involving coordination with an MFI that

was verified during plot sales. Furthermore, since this project poured effort into sales models involving

collaboration with MFI, although hearings were carried out regarding sales models involving collaboration

with agriculture-related businesses, major obstacles to coordination were encountered, and it was decided

that at this point collaboration moving forward would be difficult. In addition, although direct verification

was not carried out for the project, it became known during the course of the project that under the

National Electrification Plan being pursued by the Myanmar Government, solar products are to be

procured for mini-grid and off-grid areas in the future, and so it was decided to also look carefully at the

possibility of a B to G to C sales model with regard to government purchases. With regard to SOLAR

LANTERNS, results of market surveys and competitive research indicated that it is difficult to differentiate

amongst the products themselves and there was a large amount of competition, and so in terms of business

strategy, it was decided in future to adopt a policy of suspending sales of SOLAR LANTERNS and

pouring effort into SOLAR STORAGE as the core product.

Figure 1.18： Approach of sales model (B to C / B to B to C)


17

1.3.2 Reasons for Advisability/Inadvisability of Commercialization

Under the B to C sales model involving collaboration with the MFI PACT that was initially envisioned,

sales rose steadily but ultimately it was not possible for sales to exceed marketing costs. Under the sales

model in which an MFI (PACT) officer and salespeople visit villages to carry out direct sales activities

were carried; thus the average number of products sold was 0.79 per village. This is significantly below

RB’s average break-even point of approx. 3 products per village, and so it was decided that

commercialization of this sales model was difficult from the standpoint of profitability. Moreover,

additional sales were attempted during the crop harvest season (September/October), when clients could be

expected to have cash income (Phase 4), but sales results for this phase were even lower than for Phases 1,

2, and 3.

Furthermore, verifications of a model in which MFI (MJI) members act as sales agents [Model (ii)], a

model in which an MFI (PACT) distributed product information leaflets and conducted pre-sales activities

[Model (iii)], and a model in which another MFI capable of performing direct sales conducts direct sales

[Model (iv)] as models for lowering “marketing costs” were carried out in Phases 2, 3, and 4, but in each

case there no major sales were anticipated in business terms, and it was decided that continuing

implementation of the models would be difficult. For the sales model involving collaboration with

agriculture-related businesses, hearings were conducted with Myanmar’s largest agriculture-related

Figure 1.19： Results of pilot sales


18

business, Myanma Awba, but although the company showed a certain degree of interest, the outcome of the

hearings was that at this point, Myanma Awba is not interested in handling SOLAR STORAGE products

due to various reasons, such as the small sales volume; the additional burden on product management

caused by the sale of the company’s regular agriculture-related products (seeds, fertilizers, farming tools,

etc.) and electrification products (SOLAR STORAGE) through the same distribution networks; and the

complexity of sales opportunities due to the need for microfinancing as it would be difficult for Myanma

Awba clients to purchase a product of 100 dollars or more in cash, even if the company were to handle

SOLAR STORAGE products. In contrast, it was decided that the B to B to C sales model utilizing

companies’ CSR activities (sales promotions) [Model (v)] was a beneficial sales model for lowering

marketing costs with the aim of maximizing sales.

(1) The Sales Model in which an MFI (PACT) Officer and Salespeople Visit Villages to Carry out Direct Sales Activities

The MFI PACT decided that SOLAR STORAGE would contribute to its policy of reducing poverty, and

was exceedingly cooperative in efforts to ensure the project’s success. Accordingly, during the pilot sales

period it was possible to reach normally unreachable villages through use of PACT’s network, and the fact

that SOLAR STORAGE was a product endorsed by PACT, in which clients had tremendous trust, also

contributed tremendously to the promotion of sales. However, the method of payment by those desiring to

purchase the product became a bottleneck, and it was not possible to secure sufficient sales volume to

Figure 1.20： Analysis results of solar storage sales model


19

enable collection of fixed payments. In concrete terms, many PACT members has already reached to

maximum limit on their loan amount set by PACT, and numerous cases in which purchases could not be

made as further PACT loans could not be approved were observed. Furthermore, although additional sales

were attempted during the crop harvest season (September-October) when clients could be expected to

have cash income, the sales volume, as at normal times, it was not possible to secure sufficient sales

volume to enable collection of fixed payments. The four main reasons for this are thought to have been (i)

salespeople’s difficulty in accessing villages; (ii) decreases in agricultural income; (iii) increase in number

of electrified villages; and (iv) villagers’ purchasing of Chinese products.

【Verification Results】

With regard to the possibility of realizing the sales model involving collaboration with the MFI PACT,

working in collaboration with PACT (Kyaukpadaung Branch Office/Chauk Branch Office), pilot sales

were carried out whereby salespeople accompanied PACT officers carrying out their normal duties

(visiting villages/collecting repayments), and after the PACT work was finished, the salespeople

introduced the products to the villages and sales took place.

This model involving collaboration with PACT was effective in lightening the payment burden

on clients (repayments in 25 installments over one year using microfinance) as well as reducing

the risk of non-collection of payments.

Because PACT is an MFI, it cannot sell products. For this reason, salespeople must always

accompany PACT officers in order to carry out sales, resulting in high sales costs.

Sales results for Phases 1, 2, and 3 were a total of 271 products sold in 304 villages visited, an

average of 0.89 products per village.

With regard to types of PACT loans, hearings were conducted with PACT (Yangon Office,

Kyaukpadaung Branch Office) and easing of loan regulations was discussed.

Altogether, there were six types of loans (Regular loans, MSE (Micro Small Enterprise) loans,

Agriculture loans, Health loans, Education loans, and Extra loans), each of which had a set upper

borrowing limit.

The type of loan necessary for purchasing SOLAR STORAGE products under this project was

an Extra loan; to be eligible for an Extra loan, villagers had to have been a PACT member for

more than two years and also have no problems concerning credit.

With regard to villagers’ desire/willingness to purchase products during the harvest season, a Waiting

List was created, and in Phase 4 (additional pilot sales) of the survey was implemented.

A total of 391 villagers in 95 villages desired to purchase products in Phases 1, 2, or 3, of which

60% expressed a desire to purchase the product in September/October.

Phase 4 (additional pilot sales) was carried out in October, but the result was an average of 0.37

sales per village, a sales result lower than that for Phases 1, 2, and 3 (average of 0.89 products

sold per village).

20

Causes for the slump in sales in Phase 4 were analyzed and four main reasons were identified.

(i) Salespeople’s difficulty in accessing villages

It was planned to visit 119 villages, centered on those included on the Waiting List, but this year

the weather was unseasonable and the rainy season was prolonged, causing roads to collapse and

unpaved roads to become mud, and so the trucks that the salespeople rode in (two-wheel

drive/four-wheel drive) stalled and were unable to move forward. For this reason, salespeople

were ultimately able to visit only 78 villages, a low visit achievement rate of 66%.

(ii) Decreases in agricultural income

Due to the unseasonal weather, the peanut harvest—villagers’ main source of income—was

smaller than usual (decrease of 10% – 15 % compared to the previous year). The buying price

for peanuts this year also fell, making repayments difficult for PACT members who had already

taken out an Agriculture Loan with PACT, with some needing to take out additional loans from

the township at high interest rates in order to partly pay back their PACT loans. Under these

circumstances, it was difficult for PACT to provide villagers with new loans (loans for

purchasing SOLAR STORAGE) products.

(iii) Increase in number of electrified villages

Some villages that had been without electricity when they were visited during Phases 1, 2, or 3

had been electrified through the installation of powerlines, and many others that were applying

for installation of powerlines no longer required SOLAR STORAGE products. Furthermore,

even in villages that had not been electrified, many villages were satisfied with the electricity

supplied by generators.

(iv) Villagers’ purchasing of Chinese products

Due to the decrease in income, villagers no longer had the financial leeway to purchase new

SOLAR STORAGE products and instead purchased replacements for broken parts of the

Chinese solar systems (panels, storage battery, lighting device) they had been using.

(2) Other Sales Models During the pilot period, construction and verification of sales models for reducing “marketing costs” were

carried out, but in each case there were no expectations for major sales and it was decided that continuing

implementation of the models would be difficult.

For the model in which MFI (MJI) members act as sales agents [Model (ii)], because it was possible to

select MJI members who had prosperous electricity storage/recharging businesses, were enthusiastic about

undertaking sales agent activities, and were highly trusted by other villages, it was possible to sell four of

the six products that had been loaned to the agent for free during the two-month trial period. Ultimately,

although a market need for reducing marketing costs was identified, large scale sales were not achieved.

Moreover, major obstacles to implementation of this model in the future are comparatively high final

prices due to sales agents being required to purchase SOLAR STORAGE products themselves using MJI

21

loans rather than being loaned the products for free, as well as the difficulty of securing appropriate sales

agents.

For the model in which an MFI (PACT) distributed product information leaflets and conducted pre-sales

activities [Model (iii)], PACT distributed product information leaflets and carried out pre-sales activities in

15 villages in Mahaaungmye Township (where half of the 130 villages are without electricity) in Mandalay

District and three villagers purchased SOLAR STORAGE products (an average of 0.2 product sales per

village), but ultimately sales were no greater than those achieved with the sales model in which an MFI

(PACT) officer and salespeople visit villages to carry out direct sales activities [Model (i)].

With regard to the model in which another MFI capable of performing direct sales conducts direct sales

[Model (iv)], first of all, the number of MFIs that have sales functions and licensing is extremely small.

From amongst these, negotiations were held with Proximity, an MFI that is also a business that produces

and sells irrigation equipment to farmers. Proximity has in the past acted as a sales agent for D.light

Design, the manufacturer of SOLAR LANTERNS, and possibility of their acting as a sales agent for the

project was verified. According to Proximity staff, the D.light Design SOLAR LANTERNS that Proximity

had handled in the past had sold a total of 40,000 products, but many of the products had been faulty and

they no longer handled the D.light Design SOLAR LANTERNS. They were therefore extremely interested

in the Panasonic SOLAR STORAGE products in terms of the product quality and support system.

However, although the D.light Design SOLAR LANTERNS were priced in a low price range, enabling

villages to purchase them with cash, the SOLAR STORAGE products required microfinance in order for

villagers to be able to purchase them, and so ultimately it was difficult to implement this model as

Proximity’s microfinance officers are unable to conduct sales under their current system.

In contrast, it was decided that the B to B to C sales model utilizing companies’ CSR activities (sales

promotions) [Model (v)] was a beneficial sales model in aiming to reduce marketing costs and maximize

sales. In Myanmar, there are many companies that proactively undertake CSR activities.

Telecommunications companies aiming to strengthen telecommunications infrastructure in rural areas,

including BOP groups, as well as their customer base; financial institutions seeking to increase their

customer base that have established branches nationwide; agriculture-related businesses that are expanding

their activities, even in rural areas; and large Zaibatsu-related conglomerate enterprises carrying out

construction, general contractor, and real estate activities—these companies contribute tens of millions of

yen annually to Myanmar society through their CSR activities. For this project, the results of client

satisfaction surveys carried out as additional verification were compiled and a sales video for corporate

marketing was created, and marketing hearings were held with a total of eight companies. From the survey

results and sales video, many of the companies decided that SOLAR STORAGE products have high social

value and the company would actively consider distributing SOLAR STORAGE products as part of their

CSR activities in the next fiscal period.

In addition, although direct verification was not carried out under this project, with regard to B to G to C

22

sales, under its National Electrification Plan, the Myanmar Government intends to invest 40 million

dollars—around 6% of total investment of 700 million dollars—into SHS, mini-grid products, and off-grid

products for mainly mountainous areas where electrification is difficult, and so it was decided to pour

effort in future into tendering bids for government procurements.

1.3.3 Other Verification Items Aimed at Construction of Business Models, and Results

As mentioned in “1.3.2 Reasons for Advisability/Inadvisability of Commercialization” above, four points

were verified and determined to be issues for the construction of business models under this project outside

verification of each of the sales models: (i) Are there no misunderstandings regarding awareness of the

business environment or needs?; (ii) Is it possible to construct a maintenance system with the cooperation

of local dealers?; (iii) Is it possible to set prices in accordance with local needs?; and (iv) Can the model be

expected to contribute to the resolution of local development issues?

(1) (i) Awareness of Business Environment and Needs With regard to market needs for SOLAR LANTERNS, while it was possible to partially confirm that retail

stores in townships carried SOLAR LANTERN products, virtually no scenes of the products actually being

used in farming areas without electricity could be confirmed. Furthermore, for the BOP questionnaire

question regarding methods for securing electricity sources, 59% of respondents said that they used a

combination of solar panels and car batteries, but in contrast, only 1% said that they used SOLAR

LANTERNS, indicating that in reality SOLAR LANTERNS are virtually never used. With regard to the

competition environment, retail stores in Mandalay stocked many low-priced SOLAR LANTERNS with

the same functions as Panasonic products, and it was not possible to confirm the predominance of

Figure 1.21： Other verification items and results


23

Panasonic solar lights.

In contrast, with regard to market needs for SOLAR STORAGE, it was determined that there was a certain

degree of market needs due to the fact that there still exist many areas without electricity that have yet to

have powerlines installed; the cost of installing powerlines/transformers is partly born by villagers; many

actual purchasers are in comparatively low-income groups, even within BOP groups; and there is already a

sales history of one SOLAR STORAGE per village on average. Furthermore, it was possible to confirm

the existence of clients who require high functionality from SOLAR STORAGE products, and it is

anticipated that in future there will be a high need for large-volume SOLAR STORAGE, which enables

TV use. However, when the villages visited during Phases 1, 2, and 3 were revisited during Phase 4, some

villages that had been without electricity were found to have had powerlines installed, confirming that the

business environment can change in a very short amount of time. With regard to the competition

environment, no one-package products with functions similar to Panasonic’s SOLAR STORAGE products

could be confirmed. However, more than half the people in BOP groups living in areas without electricity

have solar panels and car batteries, thereby securing a certain amount of electricity, and so it was decided

that there was a high possibility of these electricity sources competing with SOLAR STORAGE.


With regard to the market situation and competition situation for SOLAR LANTERNS, hearings were

conducted with retail stores (household appliance stores) in Mandalay Township and Kyaukpadaung

Township, and BOP questionnaire surveys were conducted.

For the BOP questionnaire question regarding methods for securing electricity sources, 59% of

respondents said that they used a combination of solar panels and car batteries, but in contrast,

only a low 1% said that they used SOLAR LANTERNS.

Numerous competitor products similar to Panasonic’s SOLAR LANTERNS and being sold;

although their functions are virtually the same, many of these products are low-priced, making it

difficult to achieve differentiation.

With regard to the market situation and competition situation for SOLAR STORAGE, hearings were

conducted with retail stores (household appliance stores) in Mandalay Township and Kyaukpadaung

Township, and BOP questionnaire surveys were conducted.

For the BOP questionnaire question regarding methods for securing electricity sources, a high

59% of respondents said that they used a combination of solar panels and car batteries.

Although there were no one-package products with functions similar to Panasonic’s SOLAR

STORAGE products, but the combination of solar panel + inverter + car battery increases panel

power output to 80W, sufficient to enable TV viewing.

With regard to the number of villages in Kyaukpadaung Township without electricity (areas where

powerlines have not been installed) and electrification status, hearings were conducted at PACT’s

24

Kyaukpadaung Branch Office and Mandalay Electricity Supply Corporation (Kyaukpadaung Branch

Office),

The total number of villages in Kyaukpadaung Township was 390, of which 290 (75%) were

without electricity (had not had powerlines installed) and so there is a large market for electricity

and lighting.

Although the Myanmar Government bears the cost of electricity transportation from the power

generation plant to distribution transformers within Kyaukpadaung Township, the cost of

installing powerlines over the last mile (powerlines/transformers) is born by villagers, and since

this is expensive, there are high needs for solar panel home electricity generation.

With regard to the market needs of BOP groups in areas without electricity, surveys were carried out

through pilot sales.

Sales results for Phases 1, 2, and 3 were a total of 271 products sold in 304 villages visited, an

average of 0.89 products per village. Of these, a large number of purchases were made by people in

especially low-income BOP groups, with a large number of villagers—391 in 95 villages—expressing

a desire to purchase the products during the crop harvest season (September/October) if they had cash

income at that time, indicating high product purchasing needs.

With regards to purchasers desire to purchase new products, a high 60% or so of villagers required

high functionality (efficiency) products rather than low-priced low functionality products. Purchasers’

highest requirements for household appliances were for TVs, following by rice cookers and

refrigerators.

(2) (ii) Construction of Maintenance Systems in Cooperation with Local Dealers We are aware that the construction of maintenance systems is necessary from the perspectives of

differentiating our products from those of competitors and building brand relationships with clients, and it

was decided that construction of a maintenance system to be provided by existing local Panasonic repair

centers is possible. However, models such as the one used in this project, whereby salespeople directly

visit BOP groups living in areas of Myanmar without electricity are a first-time experiment for Panasonic

and differ greatly from Panasonic’s existing maintenance systems, which involve Panasonic repair centers

centered in cities. For this reason, in consideration of the fact that clients living in villages without

electricity do not have access to large cities, it is envisioned the MFI will provide support with regard to

receiving defective products, and it is planned that repair services will be provided free-of-charge in the

case that a product breaks down during the warranty period, and for a certain fee in other cases.

Furthermore, included with each products is an instruction manual that has a large number of illustrations

to enable clients who cannot read to understand how to use the product, and innovations have been added

to make the instruction manual easy to understand. For this reason, there have not been any major inquiries

from clients thus far.

25


With regard to construction of a maintenance system, discussions were held with AIS, PAP, and RB.

Until a maintenance system becomes established, inquiries from clients will be handled with the

cooperation of PACT with communication flow in the order of PACT→RB→PAP. In the future,

repair manuals and training manuals will be prepared centered on Panasonic repair centers,

which are overseen by PAP.

(3) (iii) Possibility of Price Setting in Accordance with Local Needs With regard to the main purchasers of SOLAR STORAGE in Kyaukpadaung Township, one of the areas

where the project was carried out, there was a notably high rate of purchase amongst low income groups

BOP2 (living on annual household incomes of approx. 1,500–3,000 dollars) and BOP3 (living on annual

household incomes of less than approx. 1,500 dollars) rather than BOP1 (which live on annual household

incomes of approx. 3,000–10,000 dollars), which was the target group initially envisioned for SOLAR

STORAGE sales. A large percentage of purchasers said that their reason for purchase was “Good product

functionality”, while many non-purchasers said their reason for not purchasing the product was “Not

necessary as already have a similar product”. Purchasers’ satisfaction with SOLAR STORAGE was

extremely high and they felt that “Cost performance is also good”, indicating that actually using the

product convinced purchasers that it was convenient to use and worth the high price. Since people in BOP2

and BOP3 groups had previously been unable to secure an electricity supply, it is thought that they

purchased the products with an understanding of the “Excellence of the product’s functions”, and there

was also a tendency for such purchasers to seek “high functioning/high cost SOLAR STORAGE that

enables TV usage” as new products for the future. However, with regard to needs for low-priced products,

development of new products with lower functions and prices is currently being carried out, and so it was

decided that the current price setting for SOLAR STORAGE was not causing a problem.


With regard to product price setting, BOP questionnaire surveys and client satisfaction surveys were

carried out.

Regarding purchasers’ monthly household incomes, a relatively high percentage of purchasers

were in the “Low-income BOP3 group” (55%) or “Middle income BOP2 group” (30%) and a

high approx. 70% of purchasers said that their reason for purchase was “The product has good

functions”. Furthermore, with regard to purchasers’ desire to purchase new products, a high

approx. 60% of purchasers said that they “Require high-functionality products”.

With regard to non-purchasers’ reasons for not purchasing the product, a very high more than

90% of non-purchasers said that the product was “Not necessary as already have a similar

product”, while only a low 3% said that the “Price is high” or “Function is bad”.

Amongst purchasers, the percentage of respondents who said that “I think cost performance is

extremely good” or “I think cost performance is good” was an extremely high 90% or higher.

26

(4) (iv) Contribution to Resolution of Local Development Issues In implementing this project, we are conscious of aiming to provide a stable electricity supply to

agricultural areas without electricity through the sale of high-functioning SOLAR STORAGE as an

approach to resolving development problems faced by the area in question. In Kyaukpadaung Township,

where pilot sales were carried out, some 75% of villages are without electricity, and so it was decided that

supplying electricity and lighting would contribute greatly to resolving local development issues.

Furthermore, compared with non-purchasers, a large percentage of SOLAR STORAGE purchasers are

dissatisfied with their current situation with regard to securing an electricity supply and are satisfied with

using SOLAR STORAGE, and so it was decided that it would be possible to contribute to the resolution of

development issues through the purchase of SOLAR STORAGE products.


With regard to the number of villages in Kyaukpadaung Township without electricity (areas where

powerlines have not been installed) and electrification status, hearings were conducted at PACT’s

Kyaukpadaung Branch Office and Mandalay Electricity Supply Corporation (Kyaukpadaung Branch

Office).

The total number of villages in Kyaukpadaung Township was 390, of which 290 (75%) were

without electricity (had not had powerlines installed) and so major contributions can be made to

resolving local development issues by supplying electricity and lighting.

With regard to contributions to the resolution of local development issues, BOP questionnaire surveys

and client satisfaction surveys were carried out.

Dissatisfaction with the current situation for securing electricity was higher amongst SOLAR

STORAGE purchasers (35%) than non-purchasers (11%).

All SOLAR STORAGE purchasers use the product “Every day”, with an extremely high 80% of

purchasers using the product for “Four hours or longer per day”. In addition, the percentage of

purchasers who were either “Extremely satisfied” or “Satisfied” with the product was extremely

high at over 90%.

Approx. 80% of clients said that they felt “Children’s study time has increased” compared with

before SOLAR STORAGE was used, with a high approx. 35% saying that study time had

increased by “Three hours”. Moreover, approx. 50% of clients said they felt that “Work hours

had increased”, with a high 20% saying that work time had increased by “Two hours” or “Three

hours”.

1.3.4 Countermeasures to Issues that Remain for the Future

Countermeasures to issues remaining for the commercialization of SOLAR STORAGE in Myanmar

moving forward were divided and categorized as B to C sales models, B to B to C sales models, or B to G

to C sales models. As mentioned above in “1.3.1 Advisability/Inadvisability of Commercialization”,

27

although resources will be poured into B to B to C sales moving forward, models will also be constructed

with the aim of continuing to expand sales together with MJI, which provided enthusiastic cooperation for

pilot sales. Moreover, with regard to B to G to C sales—for which direct verifications were not carried out

under this project—while pouring effort into tendering bids for government procurements under the

Myanmar Government’s National Electrification Plan, we intend to work in collaboration with PwC to

lobby the Myanmar Government before bidding on projects commences to give an advantage to the

diffusion of Japanese products in procurement guidelines.

Figure 1.22： Countermeasures to issues and schedule


28

2. Reference 2.1 Field survey 2.1.1 Pictures

Project member visited a retail store in Mandalay, Kyaukpadaung Township and researched competitor

products.

We conducted the whole kick-off meeting and demonstration at pilot sales phase 1.

Figure 2.1： Hearing to Kyaukpadaung retail stores Figure 2.2： Solar panel displayed in front of the store

Source： Project member created Source： Project member created

Figure 2.3： Sales training from RB to MBC Figure 2.4： Meeting with PACT Kyaukpadaung

branch


29

RB and MBC salespeople divided into their respective teams and carried out with visiting one village per

day with PACT officer.

Figure 2.5： PACT Kyaukpadaung branch Figure 2.6： Demonstration with all project member


Figure 2.7： Non-electrified village in

Kyaukpadaung

Figure 2.8： Solar panels used in rural areas


30

Panasonic, PwC, RB and MBC conducted preliminary meetings at the beginning of each phase.

Figure 2.9： Sales Presentation by RB Salesman Figure 2.10： Discussion to buy within PACT

member


Figure 2.11： MBC Salesperson's Sales Presentation Figure 2.12： Install solar panel at purchaser's house


Figure 2.13： Preliminary meetings 1 Figure 2.14： Preliminary meetings 2


31

Although additional sales were attempted during the crop harvest season (September-October) when

clients could be expected to have cash income, the sales volume, the climate change occurred and the road

condition was too bad to access to villages.

Figure 2.15： Naturally occurring rivers even on

arterial roads

Figure 2.16： Puddles are frequent on unpaved roads

to the village


Figure 2.17： Dirty dirt road appeared Figure 2.18： Causing roads to collapse and the truck

stacked


32

We visited solar storage purchaser's home and non-purchaser’s home in the evening, and researched actual

use scenes.

Figure 2.19： Non-purchaser’s dinner by candle Figure 2.20： Purchaser’s dinner by solar storage


Figure 2.21： Children study by solar storage Figure 2.22： Purchaser work as side business by

solar storage


33

Solar storage product and product leaflets.

Figure 2.23： Purchaser pray in front of a Buddhist

altar by solar storage

Figure 2.24： Purchaser take care of livestock by

solar storage


Figure 2.25： Solar storage product Figure 2.26： Product leaflets


34

3. Figure and Table 3.1.1 Figure

Figure 1.1： Envisioned target customer................................................................................................. 1 Figure 1.2： Project over all .................................................................................................................... 2 Figure 1.3： Solar Storage and Solar Lantern ......................................................................................... 3 Figure 1.4： Pilot sales area .................................................................................................................... 4 Figure 1.5： Average sunshine hours in Yangon and Mandalay district ................................................. 4 Figure 1.6： GDP growth rate of ASEAN countries ............................................................................... 4 Figure 1.7： ASEAN countries per capita GDP (PPP) ........................................................................... 5 Figure 1.8： Proportion of the population living in areas without electricity in ASEAN countries........ 6 Figure 1.9： Project over all milestone ................................................................................................... 7 Figure 1.10： Map of Mandalay district ................................................................................................. 9 Figure 1.11： Project structure .............................................................................................................. 10 Figure 1.12： Project structure for pilot sales and role ......................................................................... 11 Figure 1.13： Business model for solar storage <As pilot sales> ......................................................... 12 Figure 1.14： Basic business model collaborating with PACT ............................................................. 12 Figure 1.15： B to C sales model used in this project ........................................................................... 14 Figure 1.16： B to B to C sales model used in this project ................................................................... 15 Figure 1.17： Approach of field research (Pilot sales, BOP research) .................................................. 16 Figure 1.18： Approach of sales model (B to C / B to B to C) ............................................................. 17 Figure 1.19： Results of pilot sales ....................................................................................................... 18 Figure 1.20： Analysis results of solar storage sales model ................................................................. 19 Figure 1.21： Other verification items and results ................................................................................ 23 Figure 1.22： Countermeasures to issues and schedule ........................................................................ 28 Figure 2.1： Hearing to Kyaukpadaung retail stores............................................................................. 29 Figure 2.2： Solar panel displayed in front of the store ........................................................................ 29 Figure 2.3： Sales training from RB to MBC ....................................................................................... 29 Figure 2.4： Meeting with PACT Kyaukpadaung branch ..................................................................... 29 Figure 2.5： PACT Kyaukpadaung branch ........................................................................................... 30 Figure 2.6： Demonstration with all project member ........................................................................... 30 Figure 2.7： Non-electrified village in Kyaukpadaung ......................................................................... 30 Figure 2.8： Solar panels used in rural areas ........................................................................................ 30 Figure 2.9： Sales Presentation by RB Salesman ................................................................................. 31 Figure 2.10： Discussion to buy within PACT member ........................................................................ 31 Figure 2.11： MBC Salesperson's Sales Presentation ........................................................................... 31 Figure 2.12： Install solar panel at purchaser's house ........................................................................... 31 Figure 2.13： Preliminary meetings 1 ................................................................................................... 31 Figure 2.14： Preliminary meetings 2 ................................................................................................... 31

35

Figure 2.15： Naturally occurring rivers even on arterial roads ........................................................... 32 Figure 2.16： Puddles are frequent on unpaved roads to the village .................................................... 32 Figure 2.17： Dirty dirt road appeared .................................................................................................. 32 Figure 2.18： Causing roads to collapse and the truck stacked ............................................................. 32 Figure 2.19： Non-purchaser’s dinner by candle .................................................................................. 33 Figure 2.20： Purchaser’s dinner by solar storage ................................................................................ 33 Figure 2.21： Children study by solar storage ...................................................................................... 33 Figure 2.22： Purchaser work as side business by solar storage ........................................................ 33 Figure 2.23： Purchaser pray in front of a Buddhist altar by solar storage ........................................... 34 Figure 2.24： Purchaser take care of livestock by solar storage ........................................................... 34 Figure 2.25： Solar storage product ...................................................................................................... 34 Figure 2.26： Product leaflets ............................................................................................................... 34

3.1.2 Table

Table 1.1： Electricity access rate in ASEAN countries

36

4. Source 1. United Nations Department of Economic and Social Affairs Population Division

2. World Bank、Global Economic Prospects 2016

3. Panasonic HP、Annual Report 2015

4. IEA、World Energy Outlook 2015

5. World Bank、Myanmar towards Universal Access to Electricity by 2030

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Republic of the Union of Myanmar Preparatory Survey on BOP ... · people and expanding business in the region, providing “A Better Life, A Better World” to Myanmar’s consumers

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